SSP reports positive start to the year with revenues 62% of 2019
Travel caterer SSP has reported a good start to the new financial year, despite the impact of Omicron on the travel sector, with total group revenues at around 62% of 2019 levels over the first four months.
In a trading update for period covering the period from 1 October 2021 to 30 January 2022, the group said trading had recovered well over the summer and early autumn, with sales running at around 66% of 2019 levels in the first nine weeks of the new financial year (1 October to 5 December 2021). This was led by the rail sector, at around 71% of 2019 levels, benefitting from a return to office work as well as strengthening leisure traffic, with the air sector at 62%, boosted by an extended holiday season in the autumn across the UK, Continental Europe and North America.
The spread of the Omicron variant and subsequent government restrictions inevitably had an impact on passenger numbers, leaving overall group sales in the eight weeks from 6 December to 30 January at around 57% of 2019 levels. Trading remained resilient during December and throughout the holiday period, before softening in early January.
Recent weeks were "more encouraging", driven mainly by strengthening trading in the rail sector as commuter travel returned.
Around 1,950 of the group's units have reopened, about 72% of its estate. The group said underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was positive during the period and net cash flow was "broadly neutral", with available liquidity at £630m.
While Omicron continued to have some impact on trading, SSP said it was confident in managing any short-term volatility and, subject to no further government restrictions, was well positioned for the summer trading period, with an expected return to like-for-like revenues and EBITDA margins at broadly similar levels to 2019 by 2024.
SSP operates food and beverage concessions in travel locations such as airports, train stations and motorway service stations across 36 countries around the world.
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